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Itochu Corporation Unsponsored Adr (ITOCY)
OTHER OTC:ITOCY
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Itochu
(OTC:ITOCY)
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Rating:70Neutral
Price Target:
$131.00
â–²(10.32% Upside)
Itochu's overall stock score reflects a stable financial performance with strong profitability margins and manageable leverage. Technical analysis indicates a neutral to slightly positive outlook, while valuation metrics suggest the stock is reasonably priced with a decent dividend yield. The absence of earnings call and corporate events data did not impact the score.
Positive Factors
Profitability Margins
Strong profitability margins indicate efficient cost management and operational efficiency, supporting long-term financial stability.
Leverage Management
A manageable debt-to-equity ratio suggests balanced financial risk, allowing for potential growth investments without excessive leverage.
Return on Equity
High return on equity indicates effective management and strong financial performance, enhancing shareholder value over time.
Negative Factors
Revenue Decline
A substantial revenue decline poses challenges to growth and market position, potentially impacting long-term business sustainability.
Free Cash Flow Decline
Declining free cash flow growth can limit financial flexibility and investment capacity, affecting future expansion and resilience.
Cash Generation Ability
Moderate cash generation relative to net income may constrain liquidity, impacting the company's ability to fund operations and growth initiatives.
Itochu (ITOCY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$87.26B
Dividend Yield2.16%
Average Volume (3M)1.33K
Price to Earnings (P/E)13.5
Beta (1Y)0.46
Revenue Growth1.68%
EPS Growth16.99%
CountryUS
Employees113,733
SectorIndustrials
Sector Strength72
IndustryConglomerates
Share Statistics
EPS (TTM)N/A
Shares Outstanding792,445,000
10 Day Avg. Volume0
30 Day Avg. Volume1,334
Financial Highlights & Ratios
PEG Ratio1.00
Price to Book (P/B)1.73
Price to Sales (P/S)0.68
P/FCF Ratio12.95
Enterprise Value/Market Cap189.29
Enterprise Value/Revenue1.50
Enterprise Value/Gross Profit9.13
Enterprise Value/Ebitda21.67
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)8.34
Revenue Forecast (FY)$97.26B
Itochu Business Overview & Revenue Model
Company DescriptionItochu Corporation is a leading Japanese general trading company, or sogo shosha, involved in a diverse range of sectors including textiles, machinery, metals, chemicals, energy, food, and general merchandise. Founded in 1858, the company has evolved into a global enterprise with a strong presence in various industries, facilitating trade and investment across the world. Itochu engages in both wholesale and retail distribution, offering a wide array of products and services while also investing in overseas ventures to expand its market reach.
How the Company Makes MoneyItochu generates revenue through multiple streams, primarily by acting as an intermediary in international trade, selling products sourced from manufacturers to customers worldwide. The company earns income from its trading operations, which include the import and export of goods across various sectors. Additionally, Itochu invests in joint ventures and partnerships that allow it to participate in resource development, such as energy and mining projects. Significant revenue also comes from its retail operations, where it sells consumer goods directly to the public. The company benefits from strategic alliances with both domestic and international firms, enhancing its product offerings and market position. Furthermore, Itochu's investment activities, including private equity and venture capital, contribute to its earnings, leveraging its extensive network to identify and capitalize on lucrative opportunities.
Itochu Earnings Call Summary
Earnings Call Date:Nov 06, 2024
(Q2-2025)
| % Change Since: |
Next Earnings Date:Feb 11, 2026
Earnings Call Sentiment Positive
The earnings call highlighted several positive developments, including an increase in consolidated net profit and record-setting cash flows, alongside strong performances in specific sectors like Textile and Food. However, challenges such as declines in Metals & Minerals and Energy & Chemicals profits were noted. Despite these challenges, the overall sentiment is positive due to the significant gains and strategic investments being made.Q2-2025 Updates
Positive Updates
Increase in Consolidated Net Profit
Consolidated net profit increased by 6% or ¥25.5 billion year-on-year to ¥438.4 billion, achieving 50% of the annual forecast.
Strong Core Operating Cash Flows
Core operating cash flows exceeded ¥500 billion for the first time in a half-year result, reaching ¥513 billion, setting an all-time high.
Textile and Food Sector Growth
Textile, Food, and other sectors saw an increase in profit, with Textile driven by inbound consumption and stable performance in sports, and Food benefiting from a turnaround in the pork business.
Record Operating Cash Flows
Operating cash flows reached ¥578.6 billion, setting the record high, driven by stable performance from operating revenues and dividends received.
Increase in Shareholder Returns
For FYE 2025, the total payout ratio is aimed at 50%, with a dividend per share of ¥200, an increase of ¥40 from the previous year, marking the 10th consecutive year of dividend increases.
Negative Updates
Decline in Metals & Minerals Profit
Metals & Minerals saw a decrease in profit despite increased dividends from Brazilian iron ore business due to deteriorating profitability in Marubeni Itochu Steel's North American business.
Energy & Chemicals Profit Decrease
Profit in Energy & Chemicals decreased significantly due to the absence of large extraordinary gain from the previous fiscal year's power and environmental solution.
General Products & Realty Profit Decline
Profit was down in General Products & Realty due to the decrease in North American construction materials business affected by higher costs and market downturn.
Company Guidance
In the call, Itochu Corporation's President, Keita Ishii, provided guidance on various financial metrics for the first half of FYE2025. The consolidated net profit increased by 6% year-on-year to ¥438.4 billion, achieving 50% of the annual forecast. Core profit reached ¥396 billion, marking the second-highest profit level after FYE2023, with a 3% year-on-year growth across sectors including Textile, Chemicals, and Food. Core operating cash flows exceeded ¥500 billion for the first time in a half-year, reaching ¥513 billion, setting an all-time high. The overall annual forecast remains unchanged at ¥880 billion, despite revisions in sector forecasts: Textile is expected to increase by ¥40 billion, while Metals & Minerals are revised down by ¥40 billion. Total shareholders' equity rose by ¥170 billion to ¥5.6 trillion, and the company plans to maintain a total payout ratio of 50%, with a dividend per share of ¥200 and the largest-ever share buybacks of ¥150 billion.Itochu Financial Statement Overview
Summary
Itochu's financial performance is stable with strong profitability margins despite a 25% revenue decline. The balance sheet shows manageable leverage with a debt-to-equity ratio of 0.75 and a return on equity of 16.13%. However, the cash flow statement reveals a significant decline in free cash flow growth, which could impact future financial flexibility.Income Statement
Itochu's income statement shows a mixed performance. The TTM data reveals a significant revenue decline of approximately 25%, which is a concern. However, the company maintains a healthy gross profit margin of 16.48% and a net profit margin of 6.42%, indicating efficient cost management. The EBIT and EBITDA margins are also reasonable at 6.81% and 9.91%, respectively, suggesting stable operational efficiency despite revenue challenges.65
Positive
Balance Sheet
The balance sheet reflects a moderate financial position. The debt-to-equity ratio of 0.75 indicates a manageable level of leverage, which is a positive sign. Return on equity stands at 16.13%, showcasing effective utilization of shareholder funds. However, the equity ratio is not explicitly calculated, but the overall leverage appears stable, balancing risk and growth potential.70
Positive
Cash Flow
Cash flow analysis highlights some concerns with a significant decline in free cash flow growth by 41.1% in the TTM period. The operating cash flow to net income ratio is 0.22, indicating moderate cash generation relative to net income. The free cash flow to net income ratio is strong at 78.50%, suggesting good cash conversion from profits, but the declining trend in free cash flow growth warrants attention.60
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2023 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 11.02T | 14.72T | 13.95T | 14.03T | 12.29T | 10.36T |
| Gross Profit | 1.81T | 2.38T | 2.13T | 2.23T | 1.94T | 1.78T |
| EBITDA | 762.25B | 1.71T | 1.25T | 1.29T | 1.28T | 968.57B |
| Net Income | 727.21B | 880.25B | 800.52B | 801.77B | 820.27B | 401.43B |
Balance Sheet | ||||||
| Total Assets | 105.54B | 15.13T | 13.11T | 14.49T | 12.15T | 11.18T |
| Cash, Cash Equivalents and Short-Term Investments | 4.24B | 636.91B | 688.80B | 689.06B | 724.83B | 598.88B |
| Total Debt | 4.55T | 4.62T | 4.01T | 4.40T | 3.92T | 4.22T |
| Total Liabilities | 8.96T | 8.84T | 7.65T | 8.50T | 7.39T | 7.31T |
| Stockholders Equity | 41.04B | 5.76T | 4.82T | 5.43T | 4.20T | 3.32T |
Cash Flow | ||||||
| Free Cash Flow | 477.39B | 769.81B | 743.98B | 775.56B | 644.02B | 730.88B |
| Operating Cash Flow | 666.69B | 997.28B | 938.06B | 978.11B | 801.16B | 895.90B |
| Investing Cash Flow | -402.53B | -516.27B | -453.81B | -205.99B | 38.64B | -207.30B |
| Financing Cash Flow | -325.64B | -525.00B | -500.08B | -413.33B | -846.71B | -728.77B |
Itochu Technical Analysis
Positive
118.75
Price Trends
118.25
Positive
115.62
Positive
107.90
Positive
Market Momentum
0.75
Positive
52.72
Neutral
11.36
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ITOCY, the sentiment is Positive. The current price of 118.75 is below the 20-day moving average (MA) of 120.48, above the 50-day MA of 118.25, and above the 200-day MA of 107.90, indicating a bullish trend. The MACD of 0.75 indicates Positive momentum. The RSI at 52.72 is Neutral, neither overbought nor oversold. The STOCH value of 11.36 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ITOCY.
Itochu Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $124.12B | 20.60 | 35.85% | 2.24% | 7.48% | 9.55% | |
70 Neutral | $87.26B | 13.54 | 15.80% | 2.16% | 1.68% | 16.99% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
59 Neutral | $85.08B | 25.59 | 73.38% | 1.82% | -13.09% | -20.63% |
* Industrials Sector Average
ITOCY
Itochu
120.98
22.69
23.08%
MMM
3M
160.15
31.40
24.39%
HON
Honeywell International
195.50
-18.28
-8.55%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.